Pension bill aimed at documenting cities' costs

Meagan Sexton

Thursday

May 29, 2008 at 12:01 AMMay 29, 2008 at 10:11 PM

Cities would have a better idea of the cost of state-mandated pension increases for police officers and firefighters if legislation unanimously approved by an Illinois House committee on Wednesday becomes law.

Cities would have a better idea of the cost of state-mandated pension increases for police officers and firefighters if legislation unanimously approved Wednesday by an Illinois House committee becomes law.

House Bill 4905, described as a historic compromise by its sponsor, has been the subject of months of negotiations. The full House and Senate still must approve the legislation by Saturday’s scheduled adjournment before it goes go to the governor.

Springfield Mayor Tim Davlin and officials in other cities have complained for years that state lawmakers approve pension increases that cost cities millions without compensation by the state to help offset the costs. HB 4905 would require cost studies be completed for specific cities before lawmakers vote on pension increases for police and firefighters.

“I think it will make us more responsible legislators, and when we pass something, we will know what it’s actually going to cost,” said Rep. Mark Beaubien, R-Barrington Hills.

Davlin said he was pleased to see the bill progressing.

“There was a lot of hard work to get it that far,” he said.

Springfield owes more than $123 million to police and firefighter pensions, something the mayor blames in part on state-mandated pension increases.

If the legislation is signed into law, Joe McCoy, spokesman for the Springfield-based Illinois Municipal League, which represents city governments statewide, said the first study would be conducted in 2009.

“I think it’s in everybody’s interest that we start producing studies of that sort, so we’re all understanding exactly why we have experienced such a dramatic increase in public safety pension debt,” McCoy said.

Beaubien said he worked diligently to reach a compromise with public safety unions and the Municipal League, adding that he considered it a break-through agreement after years of little progress.

“Generally they have been conflicting, and for the first time they are coming together and worked out a bill,” Beaubien said. “It took probably 30 meetings and 50 hours to finally get everybody on the same page.”

Ted Street, president of the Illinois Lodge of Fraternal Order of Police, said his organization would like to see new ethics rules for pension board members but doesn’t believe HB 4905 offers any kind of reform to the pension system.

“What finally converted me from opposition to neutrality (for the bill) was the agreement from the Commission on Government Forecasting and Accountability to provide reports on pension funds,” Street said. “The purpose of those reports will address facts that will speak to why there is underfunding.”

Meagan Sexton can be reached at (217) 782-6882 or meagan.sexton@sj-r.com.

House Bill 4905

-Requires that when state lawmakers consider a pension increase for police or firefighters, the General Assembly’s Commission on Government Forecasting and Accountability must study how the increase will affect finances in specific cities. The commission decides which cities to study.

-Requires the commission to publish a pension study every two years that includes an analysis of the factors that have caused unfunded liability.